Got Questions? We've Got Answers!
March 31, 2020
While our lives are currently being affected in so many ways, it's the perfect time to turn to those who have valuable and positive insights to share with us. At Art in Voyage, we're fortunate to have a list of incredibly past guests who we will be featuring over the next few weeks! Health, fitness and wellness, finances, cooking, and travel are the topics we will be shedding light on.
To kick things off, we're featuring Brad Ledwith, Financial Advisor from Ledwith Financial Wealth Management.
Trust us, you're going to love Brad's party analogy in his last answer!
As for maneuvering, my suggestion is to always sell your major losers...you know those ones you've held on to since 2008 waiting for them to come back. Wake up folks, it's been 10 years and they still haven't come back. BP Oil is that one for me. It's done nothing for 10 years. This market downward trend has allowed me to free myself from stocks that aren't producing like they used to.
Lastly, in any crisis, please put time on these events. 5 years from now you'll be telling yourself 2 things, "I wish I had or I'm glad I did!" Most 401ks and IRAs are long term investments and you should look at this time to invest.
With that, we are all taught about living below our means. Save for a rainy day. I could go on, but please commit to yourself that you will have an emergency fund when this is all over. I don't care if it's in your sock drawer or in a money market type of account...we all need a rainy day fund. It gives us peace!
Any crisis that we've experienced follow the same pattern as a party....ice breaker, a few drinks, a cool buzz, I'll have another, oops I partied too long, and then the hangover. We'll see this party start in about 7-12 months and we'll be toasting to getting back to even in 12-24 months. Then we will be partying again and some will drink too much and get hung over. It's important to remember that nothing good happens after midnight. So when this economy comes back, remember the party analogy and enjoy a few drinks but go home and get some sleep!
Investing is hard and easy at the same time.
I've been doing this thing for 23 years. Every time the market has gone down, it's gone back up. Every time the market has gone down, the market has gone back up to set new highs. So why do people lose money in the markets...they sell.